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Buying Costs


Home Inspection

A professional home inspection reduces your risks and identifies any current or potential problems with the home. The primary purpose of a home inspection is to determine if the home has any existing major defects or will require any major repairs in the near future. You should always attend the home inspection and ensure the inspector provides you with a written report. Costs can average from $400 to $600 depending on the extent of the inspection and the size of the property.


Land Transfer Tax

Land Transfer Tax must be paid by anyone who purchases land in Ontario. Toronto residents are required to pay an additional tax. The tax is paid on the closing date of the purchase and is based on the amount the buyer pays for the property.


The following rates apply for a single family residence:


$0-$55,000.00 - 0.5% of total property value


$55,001.00-$250,000.00 - 1% of total property value


$250,001.00-$400,000.00 - 1.5% of total property value


$400,001.00 and up - 2.0% of total property value


Legal Costs


A number of legal expenses accompany the purchase of a home, such as:


  • Registration of a Deed

  • Registration of a Mortgage

  • Title Insurance

  • Reviewing the terms of the offer

  • Execution Searches Registry Search

  • Adjustments on Closing

  • Reviewing the Status Certificate for a condominium

  • Reviewing the statement of adjustments for taxes, utility bills and other costs that have been pre-paid by the seller at the date of closing.


Legal expenses can total, on average, $750.00 – $2,000.00 plus any applicable closing adjustments such as prepaid property taxes and heating oil. More complicated transactions may cost even more.


Harmonized Sales Tax

When you purchase a newly constructed home or condominium, the entire purchase price is taxable. If the property is to be rented, the full 13% HST is charged on the purchase price. However, if the home will be your primary place of residence, it may qualify for a partial HST rebate, depending on the sale price.



Before you begin your home search, it is important to establish how much you can afford to spend with a mortgage “Pre-Approval”. It is pointless to look at homes that are not within your price range as it will only make the home search process frustrating and disappointing.  Pre-Approved buyers have increased bargaining power and credibility with the seller as they are perceived as serious buyers which can be particularly beneficial in a multiple offer situation.  In order to obtain a conventional mortgage, home buyers are required to provide a down payment of at least 20% of the purchase price. If you do not have the full 20% down payment, it may be possible to obtain a high-ratio mortgage that will require a down payment of at least 5% and the purchase of default insurance.



Many homes already have a survey, however, if one does not exist title insurance may satisfy the lender and you will not have to incur the cost of a new survey.  Should you wish to order an up-to-date survey of your property expect to pay, on average, $1000-$2000.


Other Potential Costs

  • Interest adjustments between date of closing and first mortgage payment

  • Service charges from utility companies for hook-ups on electricity, gas, telephone, cable, and internet

  • Appraisal fees

  • Moving costs

  • Storage costs if you must leave your current residence before the closing date of your new home.

  • Real estate commission – While commissions are typically paid by the seller some circumstances exist whereupon the buyer may have to pay a portion of or the entire commission.

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